Shoppers Stop Q1 sales increase 6 percent, net loss narrows

Shoppers Stop Ltd., a prominent Indian department store chain specialising in fashion and beauty brands, has announced its financial results for the quarter ended June 30, 2025 (Q1 FY26), showcasing an impressive performance driven by a focus on premiumisation.

The company reported consolidated sales of Rs. 1,336 crore for the first quarter, marking a 6 percent growth compared to the same quarter in FY25. Gross Margin stood at 37.6 percent. Notably, EBITDA improved significantly by 68 percent, reaching Rs. 26 crore from Rs. 15 crore in the prior year, indicating enhanced operational efficiency.

While the company reported a GAAP PBT loss of Rs. 24 crore and PAT loss of Rs. 18 crore, the Non-GAAP figures showed a PBT loss of Rs. 13 crore and PAT loss of Rs. 7 crore, both improved from Q1 FY25.

Kavindra Mishra, MD and CEO of Shoppers Stop Ltd., commented on the results, stating, “We have delivered an impressive performance delivering sales of Rs. 1,336 Cr registering 6% growth and 5% LFL growth in department stores, driven by premiumisation. On our operational performance, EBITDA has improved by 68% (Under Non-GAAP) implying operational efficiency."

"Consumers are becoming more discerning and are willing to spend more. In a crowded marketplace, premiumisation allows retailers to stand out. As a leader in premium category products, our initiatives led our premium portfolio contribution to grow to 67% with an 8% YoY growth and LFL growth of 9%.” He further added.

Key strategic pillars demonstrated strong performance in Q1 FY26. The 'First Citizen' loyalty program remained a significant driver, contributing 85 percent to total sales, with 70 percent from repeat customers and 15 percent from new members. The Premium Black Card members' contribution increased by 44 percent year-on-year, accounting for 19 percent of sales, with an all-time high enrolment of 31,000 Black cards and 195,000 Silver cards in the quarter.

The 'Beauty' segment, excluding the distribution business, recorded sales of Rs. 219 crore (up 2 percent YoY), while including distribution, it reached Rs. 284 crore (up 17 percent YoY), bolstered by new brand launches like Dolce & Gabbana, Giordano, Elie Saab and Lovetc. The 'Beauty Distribution' subsidiary, Global SS Beauty Brands Limited, delivered healthy sales of Rs. 84 crore, a 117 percent year-on-year growth, expanding its network with brands like Armani Beauty and the launch of “Messi The Fragrance.”

'Private Brands' achieved sales of Rs. 156 crore, contributing 13 percent to total sales and 18 percent to apparel sales, driven by 18% volume growth in apparels. 'Intune', an emerging growth driver, contributed Rs. 68 crore and expanded its footprint with four new stores, reaching a total of 75 stores across 33 cities, demonstrating a 32 percent repeat customer rate in LFL stores.

In an announcement at the Annual General Meeting, B S Nagesh informed shareholders of his retirement as chairman after 34 years of service. The new incoming chairman, Nirvik Singh, paid tribute to his predecessor, stating, “This is not simply a farewell, but a celebration of an extraordinary tenure that has shaped the very character, vision, and resilience of our company and the overall retail Industry.”